Quick Take
- ChatBlu secured $500K pre-seed funding from Matador Ventures to automate e-commerce inventory management
- AI agent targets $1.8 trillion annual inventory inefficiency problem affecting global retailers
- Platform promises 20% conversion rate boost through multi-platform synchronization
- Public launch planned for September 2025 across Shopify, Amazon, Etsy, WooCommerce
- Founded by 20-year-old entrepreneurs with backing from Google and AWS angel investors
A London-based startup called ChatBlu just raised $500,000 to take on the massive $1.8 trillion inventory management headache that’s been plaguing online retailers everywhere. The company announced that Matador Ventures Capital led this pre-seed round, with the money going toward building an autonomous AI agent that handles inventory oversight across major e-commerce platforms automatically.
The startup was founded back in April 2025 by two 20-year-old entrepreneurs, Kristian Lukauskis and Alexander Dillon. Their plan? Real-time inventory syncing across Shopify, Amazon, Etsy, and WooCommerce without the usual manual hassle.
“We believe inventory should be invisible,” said co-founder Kristian Lukauskis. “Our AI agent operates quietly in the background, removing one of the last human bottlenecks in online retail.”
Attacking a $1.8 Trillion Market Problem
Here’s the thing about inventory problems – they’re costing retailers roughly $1.8 trillion every year because of stockouts and overstocking issues, according to industry data. ChatBlu’s AI agent claims it can boost conversion rates by up to 20 percent while cutting operational costs through automated backend operations.
The way it works is pretty straightforward. Store owners can tell the system things like “apply 20 percent discount to all winter jackets” in plain English, and the AI handles everything else – pricing changes, listing updates, inventory syncing across platforms.
This kind of automation hits the pain points that directly affect profits for online retailers, especially smaller businesses that don’t have the budget for fancy inventory systems.
Technical Foundation and Strategic Backing
The technical side is being handled by CTO Sairam Vangapally, who previously worked as a data engineer at Amazon and Shutterfly. The team also includes people with experience at Apple, Meta, Adidas, and Xbox.
ChatBlu came out of the 2024-2025 Genoa Entrepreneurship School cohort, which is a European accelerator that reports a 75 percent funding success rate. Industry veterans like Douglas Leone, a Partner at Sequoia Capital, mentor companies through the program.
The backing from Matador Ventures Capital, known for investing in Y Combinator companies, shows there’s real market validation here. Plus, they’ve got support from Google and Amazon Web Services angel investors, which could mean faster platform integrations down the road.
September 2025 Launch Strategy
ChatBlu is targeting a September 2025 public launch, starting with Anglo-Saxon markets before moving into Hispanic regions by 2026. This step-by-step approach gives them time to polish the product while grabbing market share in established e-commerce areas.
The AI platform’s natural language interface is a pretty big deal for inventory management tech. Store owners can give complex commands without needing to be tech experts, which opens up advanced inventory control to businesses of all sizes.
“E-commerce has evolved, but inventory management hasn’t kept up,” said co-founder Dillon. “ChatBlu is here to change that and set a new standard for how stores operate across platforms.”
Market Risks and Competitive Landscape
That said, ChatBlu is going up against some established inventory management solutions. Their success really comes down to how fast they can execute and whether their AI agent actually delivers those promised conversion rate improvements.
The September 2025 launch timeline is pretty aggressive for a company that only started in April 2025. But the team’s background at major tech companies gives them the technical chops needed for rapid development.
ChatBlu’s focus on automated listing optimization through smart algorithms could give them an edge in crowded e-commerce markets. Still, execution will be everything in a sector where operational efficiency directly impacts the bottom line.
Industry Transformation Implications
ChatBlu’s hands-off approach to inventory management points to a bigger trend toward AI-driven operations across e-commerce. Retailers who jump on automation solutions early might get significant competitive advantages as this technology develops.
The startup’s natural language interface could set new benchmarks for user experience in business software. This accessibility factor might speed up adoption among smaller retailers who couldn’t afford sophisticated inventory systems before.
Business leaders should keep an eye on ChatBlu’s rollout because the platform’s capabilities could seriously shake up competitive dynamics in online retail. Getting on board with advanced inventory automation early might become essential for staying competitive in an increasingly automated e-commerce world.
